TMI BlogProfits chargeable to taxX X X X Extracts X X X X X X X X Extracts X X X X ..... to him shall be deemed to be profits and gains of business or profession and accordingly chargeable to income-tax as the income of that previous year, whether the business or profession in respect of which the allowance or deduction has been made is in existence in that year or not; or ( b ) the successor in business has obtained, whether in cash or in any other manner whatsoever, any amount in respect of which loss or expenditure was incurred by the first-mentioned person or some benefit in respect of the trading liability referred to in clause ( a ) by way of remission or cessation thereof, the amount obtained by the successor in business or the value of benefit accruing to the successor in business shall be deemed to be profits and ga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case may be, together with the amount of scrap value, if any, exceeds the written down value, so much of the excess as does not exceed the difference between the actual cost and the written down value shall be chargeable to income-tax as income of the business of the previous year in which the moneys payable for the building, machinery, plant or furniture became due. Explanation .-Where the moneys payable in respect of the building, machinery, plant or furniture referred to in this sub-section become due in a previous year in which the business for the purpose of which the building, machinery, plant or furniture was being used is no longer in existence, the provision of this sub-section shall apply as if the business is in existence in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ins of business or profession, and accordingly chargeable to income-tax as the income of the previous year in which it is recovered, whether the business or profession in respect of which the deduction has been allowed is in existence in that year or not. 10 [ Explanation. - For the purposes of sub-section (3),- ( 1 ) moneys payable in respect of any building, machinery, plant or furniture includes- ( a ) any insurance, salvage or compensation moneys payable in respect thereof; ( b ) where the building, machinery, plant or furniture is sold, the price for which it is sold, so, however, that where the actual cost of a motor car is, in accordance with the proviso to clause ( 1 ) of section 43, taken to be twenty-five t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n referred to in this section is no longer in existence and there is income chargeable to tax under sub-section (1), 12 [ *** ] sub-section (3) 13 [, sub-section (4) or sub-section (4A) ] in respect of that business or profession, any loss, not being a loss sustained in speculation business 14 [ *** ] , which arose in that business or profession during the previous year in which it ceased to exist and which could not be set off against any other income of that previous year shall, so far as may be, be set off against the income chargeable to tax under the sub-sections aforesaid. 15 [ (6) References in sub-section (3) to any other provision of this Act which has been amended or omitted by the Direct Tax Laws (Amendment) Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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